Why Kellogg Should No Longer Be Ignored By Investors: Analyst Upgrades Stock Amid Improved Earnings Outlook

Kellogg Company K, which has consistently outperformed analyst forecasts during and after the pandemic, is gearing up to report its second-quarter earnings.

While Kellogg’s stock is trading at a five-year low and a 15-year low versus its U.S. food peers, the company providing fiscal 2024 pro-forma guidance could “serve as a positive catalyst as greater financial clarity increases investor interest,” according to Bernstein.

The Kellogg Analyst: Alexia Howard upgraded the rating for Kellogg from Underperform to Market Perform, while keeping the price target unchanged at $62.

The Kellogg Thesis: "Investors seem to have ignored the company’s improved earnings outlook," Howard said in the upgrade note.

Check out other analyst stock ratings.

“Kellogg was the worst performing company in our coverage over the past year,” despite a similar increase in the consensus EBIT estimates as its peer General Mills Inc GIS, the analyst stated. “Also, the valuation spread between K and GIS expanded to 18% post announcement, after trading close to parity for over a decade,” she added.

Even considering the additional costs from the spin-off, the valuation of Kellogg’s stock “scans attractively,” Howard wrote.

K Price Action: Shares of Kellogg had risen by 0.53% to $65.58 at the time of publishing Thursday.

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